Intel to sell Folsom campus real estate, lease space in $10B cost-cutting effort
Following hundreds of layoffs at its site in Folsom, Intel confirmed plans to list the real estate of its campus there for sale and lease back part of the space, amid a broader cost-reduction effort for the Santa Clara-based tech company.
The company in a statement said it is shifting its real estate strategy to focus on “fewer, more populated locations.” The company said the move, first reported by the Sacramento Business Journal, will save money and eliminate underutilized space.
“This approach will foster greater in-person collaboration at our largest sites while also delivering cost savings for the company,” the statement read. “We are exploring more cost-effective space usage options for Intel’s Folsom site, including a partial lease back of our current space.”
The company, one of the region’s largest private-sector employers, has been rushing to trim expenses amid sliding profits, tempered demand and an increasingly competitive market.
According to layoff notices filed with the state, over the course of 2023 Intel gradually cut nearly 790 jobs at the Folsom campus. Then in August the company announced a global plan to cut costs by $10 billion in 2025, in part by trimming more than 15% of its workforce by the end of next year. Intel employed 124,800 worldwide as of December, according to regulatory filings.
At the Folsom campus, which in the past has employed around 5,000 people, the company offered voluntary buyouts earlier this year. Then in October it disclosed plans to cut 272 more positions there.
CEO Pat Gelsinger said later that month that Intel had completed the “vast majority” of the planned job cuts, which he described as “hard but necessary decisions” to right-size the company.
Intel stock closed at $24.50 on Friday, down nearly 49% since the start of the year.
This story was originally published November 23, 2024 at 1:21 PM.
